CoreWeave Data Center To Double City's Power Needs
15 juillet 2025 à 13:00
An anonymous reader quotes a report from Bloomberg: CoreWeave is expanding a data center that is projected to double the electricity needs of a city near Dallas, another example of the strains that artificial intelligence workloads are placing on the US power supply. Local officials have grappled with how to handle the increased stress on the electricity grid from the project, according to a late 2024 presentation and emails seen by Bloomberg. The site is being developed by Core Scientific and will be used by OpenAI in Denton, Texas. Last week, CoreWeave announced it would acquire Core Scientific for about $9 billion, in part, to gain direct control of its data centers aimed at supplying AI work.
Denton, about 50 miles northwest of Dallas, has almost doubled its population in the last 25 years to about 166,000 residents. To meet the spike in AI-related power demand, the city is passing on any extra costs to the data center operator and constructing additional grid infrastructure, Antonio Puente, general manager of local utility Denton Municipal Electric, said in an interview. "To serve the entire load from Core Scientific, we do have some transmission challenges," Puente said. "We will have to make some additional transmission investments." [...] Like some other large AI data center projects, the site in Denton was focused on cryptocurrency mining before pivoting to AI workloads in December. This transition means unrelenting power consumption -- the site will no longer curtail operations when power prices are high -- which will increase grid strain. "Now you're talking about a facility that has to have energy 24 hours a day, 365 days a year," Puente said. That challenge will be mitigated by the addition of backup generators and batteries, he added.
Unlike many large projects, the Denton data center didn't receive local tax exemptions. Officials expect more than $600 million in property and sales tax from the data center expansion, more than double the costs it plans to incur, according to an analysis document seen by Bloomberg. It also anticipates that 135 new jobs will be created, according to the document. The Denton site, which is already being rented by CoreWeave, is Core Scientific's largest planned project at about 390 megawatts of power. It's "utilizing the majority of extra system capacity" in the city, wrote a utility executive in a January email seen by Bloomberg. Any additional large power users will exacerbate overloads on the grid, the executive added. "When fully built out, it will host one of the largest GPU clusters in North America," Core Scientific Chief Executive Officer Adam Sullivan said of the site during a May call. "Denton is a flagship facility."
The report notes that Texas could face electricity shortages as soon as 2026 due to surging power demand from data centers, oil and gas operations, and crypto mining.
Read more of this story at Slashdot.